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FIRST CHICAGO TO ACQUIRE LAKE SHORE BANCORP

 CHICAGO, Nov. 22 /PRNewswire/ -- Lake Shore Bancorp., Inc. (NASDAQ/NML: LSNB) announced today that it signed a definitive agreement with First Chicago Corp. for the purchase of all outstanding shares of Lake Shore for approximately $323 million in First Chicago stock.
 The agreement provides that each share or share equivalent of Lake Shore common stock will be exchanged for First Chicago common stock valued at $31.08. The exchange ratio will be determined based on the average closing price of First Chicago common stock during a 20-day period ending just prior to the closing of the transaction. The exchange ratio adjusts within a range of $37 and $53 per share of First Chicago common stock. Based on the most recent closing price ($44) of First Chicago common stock, Lake Shore stockholders would receive 0.71 shares of First Chicago common stock for each Lake Shore share.
 The transaction is designed to qualify as a tax-free reorganization and is expected to be accounted for as a pooling-of-interests. The transaction is subject to approval of Lake Shore's stockholders and various bank regulatory authorities, and is expected to close in the second quarter of 1994. Lake Shore also has granted First Chicago an option to purchase newly issued shares equal to 19.9 percent of the currently outstanding shares of Lake Shore common stock upon the occurrence of certain acquisition events with respect to Lake Shore.
 ``We believe that the transaction will be good for both our customers and stockholders. The execution of this agreement represents the culmination of a process which began last August with our public announcement that we would undertake a study of our strategic options. Numerous parties were given an opportunity to review detailed information about Lake Shore. First Chicago emerged as the winner after an active bidding process conducted by Donaldson, Lufkin & Jenrette, our bankers,'' said James W. Aldrich, chairman and chief executive officer of Lake Shore.
 Lake Shore, with $1.2 billion in assets and eight offices in the Chicago metropolitan area, is the bank holding company for Lake Shore National Bank, Chicago, and Bank of Hinsdale, Hinsdale. It has three offices in Chicago (one in Lincoln Park and two on Michigan Avenue), two offices in Hinsdale, and one each in Woodridge, Clarendon Hills, and Glen Ellyn.
 -0- 11/22/93
 /CONTACT: L. Thomas McNamara of Lake Shore Bancorp, 312-915-5733/
 (LSNB FNB)


CO: Lake Shore Bancorp; First Chicago Corp. ST: Illinois IN: FIN SU: TNM

SP -- NY032 -- 6760 11/22/93 10:40 EST
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Publication:PR Newswire
Date:Nov 22, 1993
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